With Wanda Group being confirmed as the buyer of AMC the other week, many heads were turning in confusion. The Wrap posted some theories on Wanda’s motives for the deal.
Will they be changing the name to “CMC”? Somehow ‘American’ Multi-Cinema no longer seems appropriate.
For the upper level executives this sale amounts to a golden fleece. No only do they unload their stock at a premium, but most high level executives have ‘change of control’ provisions in their employment agreements.
Under a typical ‘change of control’ provision if a company is sold …. the seller must pay off the balance of an executive’s employment contract. Lets say the executive was making $300,000 per year and there are five years left on that persons employment contract…. this means he gets 1.5 Million (300,000 x 5) on the date of sale. And since Wanda has agreed to keep all the executives in place ….. it means said executive still gets to keeps his job at the same compensation but no employed by Wanda…. in other words the executive gets paid twice for the same work.
poor old theatre mgrs. always got and still it seems gets the shaft.